On Tuesday, May 21, BlackRock's spot Bitcoin exchange-traded fund (ETF) saw an impressive surge, accounting for 95% of total U.S. spot Bitcoin ETF inflows, totaling over $300 million in net inflows. According to preliminary data from Farside Investors, BlackRock's iShares Bitcoin Trust (IBIT) experienced substantial inflows of $290 million on that day alone. When combined, net inflows across all 11 ETF issuers amounted to $305.7 million.
This influx marked a significant turnaround for BlackRock's ETF, reversing a trend of negligible or minimal inflows observed over the previous six weeks. The May 21 inflows into IBIT surpassed the cumulative inflows of the fund over the trailing 21 trading days. In total, over $1 billion has flowed into spot Bitcoin, with the cryptocurrency exhibiting volatility over the past four trading days while ETFs demonstrate robust performance.
BlackRock's funds have amassed cumulative inflows of $16 billion since inception, as reported by Farside Investors, although the product's official website indicates assets under management (AUM) of $19 billion. This positions BlackRock's IBIT in close proximity to industry leader Grayscale, whose Grayscale Bitcoin Trust (GBTC) ETF boasts $20 billion in AUM according to its official website.
Meanwhile, GBTC experienced no outflows on May 21, extending the streak of trading days without net outflows to five. Over the past five days, the fund witnessed $72.5 million in inflows, reversing a four-month trend of consistent outflows. However, not all ETFs experienced positive flows on Tuesday, with the VanEck Bitcoin Trust ETF witnessing outflows of $5.9 million, and the Bitwise Bitcoin ETF experiencing outflows of $4.2 million.
Contrastingly, the Fidelity Wise Origin Bitcoin Fund saw inflows of $25.8 million, depleting its remaining funds to zero. The enthusiasm for Bitcoin ETFs surged in tandem with rising Bitcoin prices, which saw a 12% gain over the past week, reaching a six-week high of $71,600 on May 21 before retracting to below $70,000 in early Asian trading on May 22. Moreover, the potential approval of a U.S. spot Ethereum ETF by the U.S. Securities and Exchange Commission has further buoyed the cryptocurrency market since May 20.
